Angela Merkel warns Russia could seek to destabilise 'whole of the European peaceful order'

German Chancellor warns that, if left unchecked, Vladimir Putin's Russia could
seek to destabilise Moldova, Georgia and Serbia

By Roland Oliphant in Dnepropetrovsk

5:41PM GMT 17 Nov 2014

Russia could seek to destabilise vast areas of eastern Europe if it is not challenged in Ukraine, Angela Merkel has warned.

The strongly worded statement came as Ukraine's president warned of a resumption of "total war" in the strife-torn country's east.

In a speech to Sydney's Lowry Institute for International Policy Studies, the German Chancellor said Russia's annexation of Crimea and subsequent destabilisation of eastern Ukraine "called the whole of the European peaceful order into question".

"This isn't just about Ukraine," she said. "This is about Moldova, this is about Georgia, and if this continues then one will have to ask about Serbia and one will have to ask about the countries of the Western Balkans."

Mrs Merkel said she feared the creation of a Cold War-style zone of influence in Europe where Moscow could demand consultation on any major decision.

Ukraine and Western governments accuse Russia of fomenting and sustaining a six-month old secessionist uprising in eastern Ukraine, where more than 4,000 people have died in fighting since April. Russia denies the accusations.

A ceasefire agreement in Minsk brought a halt to most fighting in early September, but artillery battles have continued around strategic flash points.

Hostilities have escalated sharply in the past two weeks, fuelling concerns about a return to all-out warfare.

"We are prepared for a scenario of total war ... we don't want war, we want peace and we are fighting for European values. But Russia does not respect any agreement," he said in an interview with the German newspaper Bild.

On Sunday, Mr Poroshenko signed a decree withdrawing state services and banking provisions in separatist held parts of the country.

Earlier this month, he ordered extra troops to key eastern cities in anticipation of a renewed separatist offensive after Ukraine and Nato accused Russia of pouring tanks, artillery, and combat troops into separatist held areas since the beginning if the month.

Vladimir Putin neither confirmed nor denied sending weapons to separatists, but also made clear he would not allow Ukraine to resolve the crisis through use of force.

"Anyone who is waging a war they believe is just will find weapons," he said in an interview with Germany's ARD television station.

But Mr Putin said he believes a settlement is possible without breaking up Ukraine, calling for a "single political space".

That appears to contradict statements by senior separatist leaders, who say they want to establish an independent state on the territory they occupy.

Fierce fighting resumed at Donetsk airport following an overnight truce to allow either side to collect their dead, officials in Kiev said.

Correspondents in the rebel's political and military stronghold said heavy shelling could be heard in the city centre from the morning throughout the day.

"Now, I understand, they have sorted out the corpses and have started shooting again," said Vladislav Seleznyov, a Ukrainian military spokesman.

Earlier Andrei Purgin, a senior separatist leader, appeared to suggested that a more lasting agreement had been reached to halt fighting at the airport.

Seven Ukrainian soldiers and three police officers were killing in fighting on Sunday and Monday, officials said.

The latest escalation came as Dutch investigators continued to salvage wreckage from the crash site of Malaysian Airlines flight 17.

Work to remove wreckage from the eight square mile crash site began on Sunday. The site lies 30 miles east of Donetsk in separatist held territory.

Observers from the Organisation for Security and Cooperation in Europe said more wreckage and human remains were found at the site on Monday.

Britain is to supply ten armoured vehicles to the OSCE special monitoring mission in Eastern Ukraine, the Foreign and Commonwealth Office said.

The offer follows a request from the group for equipment to help expand its monitoring mission in accordance with the terms of the Minsk ceasefire.

European foreign ministers said they would add more separatist figures to the bloc's list of sanctioned individuals by the end of this month.

At a meeting, EU ministers in Brussels shied away from imposing further sectoral sanctions against Russia.